China's growth slowdown meets forecasts

CHINESE GDP growth slowed in the second quarter by 7.5 per cent year-on-year, in line with expectations.

Markets responded well to the data, which allayed fears of a sharper decline. The FTSE was up 0.9 per cent in early trading after the Shanghai stock exchange rose nearly one per cent.

Other figures released today showed that China’s industrial output in June had risen slightly less than anticipated but retail sales beat expectations.

“While there may be concerns the official target will be missed and a potential lower rate of growth, there is no real surprise as we get used to the emerging giant’s growth having to slow up after years of strong expansion,” commented Mike van Dulken, head of research at Accendo Markets.